US Factory Jobs Keep Falling Despite Trump’s Manufacturing Revival Push

US manufacturing employment has continued to decline despite former President Donald Trump’s repeated claims of an industrial revival driven by tariffs and reshoring policies | Image:
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US manufacturing employment fell again in December, extending a steady decline that has now lasted most of 2025, underscoring the gap between political promises of an industrial resurgence and labour market realities.

According to government data, factory payrolls have dropped by more than 70,000 jobs since April, pushing total manufacturing employment to around 12.7 million, the lowest level in over three years. The sector has now recorded job losses in eight of the past nine months.

Tariffs Fail to Deliver Hiring Boost

President Donald Trump has repeatedly argued that tariffs and protectionist trade policies would revive domestic manufacturing and bring factory jobs back to the US. Tariff collections have surged, generating tens of billions of dollars in revenue annually, but manufacturers say higher input costs and supply-chain uncertainty have offset any benefit from reduced import competition.

Many firms have opted to invest in automation or overseas capacity rather than expand domestic headcount, limiting the employment impact of reshoring initiatives.

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Broader Jobs Growth Masks Factory Weakness

While overall US employment growth has remained positive, driven largely by healthcare and services, manufacturing has emerged as a weak link. Economists note that factory hiring tends to slow earlier in economic cycles as companies respond quickly to changes in demand and costs.

The unemployment rate edged lower in December, but analysts say this largely reflects slowing labour force participation rather than strong job creation in goods-producing sectors.

Structural Challenges Weigh on Outlook

Industry executives cite multiple headwinds facing US manufacturing, including higher borrowing costs, rising wages, energy price volatility, and slowing global demand. Even companies expanding production capacity are increasingly relying on technology rather than labour-intensive processes.

As a result, economists warn that a sustained rebound in factory employment is unlikely without broader investment incentives, stable trade policy, and stronger demand growth.

Despite aggressive rhetoric and rising tariff revenues, the long-promised revival in US factory jobs has yet to materialise. For now, manufacturing remains a drag on the labour market, highlighting the limits of trade policy as a tool for job creation.

-With inputs from Reuters

Also read: SC Rulings Loom as Trump’s Tariff Authority Faces Fresh Legal Scrutiny

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Trump meets Intel CEO, hails US-Made Sub-2 Nanometer Chip, links manufacturing push to tariff policy

ANI |
Updated: Jan 09, 2026 08:39 IST

Washington DC [US], January 9 (ANI): US President Donald Trump has hailed chipmaker Intel for launching an advanced semiconductor product manufactured entirely in the United States, calling it a major achievement for American industry and a validation of his administration’s aggressive trade and manufacturing policies.
In a social media post, President Trump said he had a “great meeting” with Intel CEO Lip-Bu Tan, praising the company’s technological progress and its commitment to domestic manufacturing.
Trump stated that Intel has launched the first sub-2 nanometer CPU processor that has been designed, built, and packaged in the USA.
“I just finished a great meeting with the very successful Intel CEO, Lip-Bu Tan. Intel just launched the first SUB 2 NANOMETER CPU PROCESSOR designed, built, and packaged right here in the U.S.A.,” Trump wrote in the post.
The US President also highlighted the financial gains made by the US government through its ownership position in Intel. According to Trump, the United States government is a shareholder in the company and has already earned tens of billions of dollars for the American people in just four months through this stake.
“The United States Government is proud to be a Shareholder of Intel, and has already made, through its U.S.A. ownership position, Tens of Billions of Dollars for the American People – IN JUST FOUR MONTHS. We made a GREAT Deal, and so did Intel,” Trump said.
Trump further asserted that his administration is determined to bring leading-edge chip manufacturing back to America, adding that the progress made by Intel demonstrates that this objective is being achieved.
“Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!!” the President added.
Echoing Trump‘s comments, Intel CEO Lip-Bu Tan also shared a social media post expressing appreciation for the support received from the US leadership.
“Honored and delighted to have the full support and encouragement of @POTUS @realDonaldTrump and @CommerceGovSecretary @howardlutnick as we bring leading edge chip manufacturing back to America,” Tan said in his post.

He added that Intel is now shipping its latest Core Ultra Series 3 CPU processors, which are designed, manufactured, and packaged in the USA using the most advanced semiconductor technology.
“@intel is now shipping the latest Core Ultra Series 3 CPU processors – designed, manufactured and packaged with the most advanced semiconductor technology, right here in the USA,” the Intel CEO stated.
President Trump has repeatedly linked such developments to his administration’s trade policies. Since beginning his second term as President, Trump has pursued aggressive trade measures, including the imposition of tariffs, with the stated objective of boosting domestic manufacturing in the United States.
Trump has imposed tariffs on countries that were major exporters to the US, including India and China.
On India, Trump has already imposed 50 per cent tariffs on goods entering the United States since August 2025.
In another social media post, Trump cited recent economic data to argue that tariffs have strengthened the US economy and improved national security.
He claimed that the United States has recorded its lowest trade deficit since 2009 and that the figure is continuing to decline.
“Numbers released today show that the United States of America has the lowest Trade Deficit since 2009, and going even lower,” Trump said.
He further stated that the nation’s gross domestic product is predicted to come in at over 5 per cent, even after what he described as a 1.5 per cent loss due to a Democrat “Shutdown.”
Trump attributed these outcomes directly to his tariff policies, saying they have “rescued” the US economy and national security. He also urged the Supreme Court to take note of what he described as historic achievements before issuing what he called its most important decision ever.
“These incredible numbers, and the unprecedented SUCCESS of our Country, are a direct result of TARIFFS, which have rescued our Economy and National Security. I hope the Supreme Court is aware of these Historic, Country saving achievements prior to the issuance of their most important (ever!) Decision. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP.” (ANI)

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